Unless you have no interest in crypto whatsoever you would have been made aware of the craziness which is Dogecoin. At one point last week the currency saw gains of over 600% before finally having some drawbacks. Such was the extent of the price activity, it has been reported that the dogecoin frenzy overloaded the Robinhood order system.
This is another embarrassing moment for one of the biggest investing platforms in the world. As it was not long ago they had to seize trading on certain stocks like GameStop as they could not handle the volume. This resulted in many traders looking for alternative platforms to carry out their trading.
Michael Novogratz, chief executive officer of Galaxy Digital Holdings doesn’t believe that the rise of Dogecoin is good for the markets and effectively sounded cautious for anyone who is considering buying.
“It’s reminiscent of GameStop,” he said in an interview with Bloomberg TV, referring to the meme stock mania that gripped markets in February. “I would be very, very worried if one of my friends was investing in Dogecoin at these prices.”
It is impossible to argue with this logic in the short term at least as it is not sensible to be super bullish on something that has seen unprecedented gains. Logic dictates that there will be an almighty price drop and if you were going to invest in DOGE again the best time to do so would be after such a decline.
Having said all of this though, predicting what will happen to the price of Dogecoin is like predicting your future. Anything can happen at a moment’s notice that just changes the total trajectory of what you have come to expect. All, we would say for now though is to treat investing in this coin with care and only invest a small percentage of your portfolio.